Foreign Contribution (Regulation) Act, 2010:
The Ministry of Home Affairs (MHA) issued new regulating guidelines to banks under Foreign Contribution (Regulation) Act, 2010.
- It states that the donations received in Indian rupees by non-governmental organizations (NGOs) and associations from any foreign source (even if that source is located in India at the time of such donation) should be treated as a foreign contribution.
About the New Guidelines:
- Widening the Scope of Foreign Contribution: Under the issued regulations, donations given in Indian rupees (INR) by any foreigner/foreign source including foreigners of Indian origin like Overseas Citizen of India (OCI) or Person of India Origin (PIO) cardholders should also be treated as foreign contribution.
- Meeting the Standards of FATF: The guidelines mandate that good practices should be followed by NGOs in accordance with the standards of the global financial watchdog- Financial Action Task Force (FATF).
- It asked NGOs to inform the Ministry about “suspicious activities” of any donor or recipient and “take due diligence of its employees at the time of recruitment.”